02136cam a22002417 4500001000600000003000500006005001700011008004100028100002200069245013800091260006600229490004100295500002000336520115700356530006101513538007201574538003601646700002101682710004201703830007601745856003701821856003601858w3095NBER20161209114243.0161209s1989 mau||||fs|||| 000 0 eng d1 aScholes, Myron S.14aThe Effects of Changes in Tax Laws on Corporate Reorganization Activityh[electronic resource] /cMyron S. Scholes, Mark A. Wolfson. aCambridge, Mass.bNational Bureau of Economic Researchc1989.1 aNBER working paper seriesvno. w3095 aSeptember 1989.3 aWe present evidence that changes in tax laws passed in the 1980s, culminating with the Tax Reform Act of 1986, had a first order effect on observed merger and acquisition activity in the US. We also present evidence of increased reliance on certain institutional arrangements (unit management buyouts and going-private transactions) used to effect mergers and acquisitions that were designed to reduce the nontax costs of transacting, thereby enabling tax benefits to be realized in a larger number of mergers and acquisitions than might otherwise have occurred. We begin with a "closed-economy" perspective, focusing on the effects of changes in tax laws on the demand for mergers and acquisitions of us corporations by US corporations. We then broaden the scope of inquiry by modeling and testing the effects of changes in tax laws on the demand for mergers and acquisitions of US corporations by foreign multinationals. Here we predict and present confirmatory evidence that while the 1986 Tax Act discouraged transactions among US corporations, it increased the demand for merger and acquisition transactions between US sellers and foreign buyers. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web.1 aWolfson, Mark A.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w3095.4 uhttp://www.nber.org/papers/w309541uhttp://dx.doi.org/10.3386/w3095